Future Business Models: When brands go beyond endorsements. Part 4: Red Bull Records Act III

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We’ve seen how attractive Red Bull Records are to artists who want to benefit from a certain level of artistic control and have the tools and time to develop their sound and their career on a serious long-term plan. But on top of their amazing facilities and great artist development team, does the label actually have the power and reach to generate revenue for their artists? This was probably the weakest point in the case of Hard Rock records, which offers great financial support to their bands but ultimately doesn’t seem too interested in album sales.

As you’d expect, Red Bull went all the way when founding their label and the imprint has a complete offer for their roster. The releases are distributed by Sony Music’s RED Distribution in North America and EMI in Europe. The label handles everything: marketing, publishing, radio-plugging, sync licensing and so on. Due to the diversity of their roster (showcased yet again by their latest singing Itch) Red Bull Records has only decided to outsource Public Relations work.

It seems like the answer to the question above is a big Yes. Red Bull Records’ contracts offer the artists with the prospect of several revenue streams well managed and collected by the label, making it one of the most attractive record companies out there. Quietly growing, with a genuine passion for music that makes us forget that they are ultimately selling cans of energy drink, Red Bull Records is to be watched closely as it becomes one of the top independent labels in the world.

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